Can you file bankruptcy if you went to a private school and the school broke the loan contract and now they want the money owed which is in collection?

Answer 1

Hello, Speak to your local Government Justice Department, Someone there should be able to give you directions for assistance. Peter. If it is a college loan, made under one of the federal programs, bankruptcy may not be effective. A loan to go to say a Technical School (many of which are no more than an ordinary business), which is probably actually made or now owned by a financial institution, would be like any other debt. I suspect you'll find that the loan agreement and the contract with the school on what they would provide are 2 entirely different things. The school may have not provided what it promised, but the lender, who basically only has to provide the money in exchange for your promise to repay, did what they had to. Even if true, the fact that the school didn't fulfill it's side of the bargain, (the lender who gave the money to you did), makes no difference on the requirement to pay the loan in either case. You just may have reason for refund by the school. But understand...filing bankruptcy is a very, very big deal. You do not do it for a specific item. And while it will in fact mean the item will no longer be in in collection, that does not mean it would be reported as satisfied. It will never be. Your credit will show a bankruptcy instead of an unpaid item. Bankruptcy is much worse than collection and effects literally everything you have and many things you may want to get or do for sometime.